HSBC Aims To Restore Quarterly Dividend To Pre-COVID-19 Levels As Soon As Possible

HSBC Holdings plc's HSBC Q2 revenue increased by 2% to $12.8 billion, primarily reflecting interest rate rises, partly offset by an adverse movement in market impacts in insurance manufacturing in WPB, foreign currency translation impacts, and losses on planned business disposals. 

Customer lending was $27 billion lower in 2Q22 due to foreign currency translation impacts.

Net interest margin of 1.35% rose by nine basis points from 1Q22.

Guidance: For FY22, HSBC expects a net interest income of at least $31 billion and at least $37 billion for 2023.

The company expects a dividend payout ratio of around 50% for 2023 and 2024. It intends to revert to paying quarterly dividends in 2023, although at a lower level than the historical quarterly dividend of $0.10 per share.

Additionally, HSBC has pushed back on a proposal by top shareholder Ping An Insurance Group Co of China to split the firm, Reuters reported citing huge one-off execution costs, higher taxes, and ongoing running costs.

"There would be a significant execution risk over a three to five year period when clients, employees, and shareholders would all be distracted," Quinn said regarding the break-up proposal.

Price Action: HSBC shares are up 7.32% at $33.70 during the premarket session on the last check Monday.